Superannuation Changes 2015

The Federal Government announced that there will be "no new taxes on superannuation" and only a few proposed super changes including:

RELAXATION OF EARLY RELEASE RULES FOR THOSE WITH A TERMINAL ILLNESS

From 1 July 2015, the Government proposes to amend the provision for accessing superannuation for people with a terminal illness. Under the current provisions, in order to gain unrestricted access to their super a patient must currently have two medical practitioners certify that they are likely to die within one year. The Government will change this life expectancy period to 2 years.

CUTTING THE RED TAPE FOR UNCLAIMED AND LOST SUPER

From 1 July 2016, a package of measures is proposed to reduce the red tape for super funds and individuals around lost and unclaimed super. Redundant reporting obligations will be removed and lost and unclaimed super administrative arrangements will be streamlined.

These changes will make it easier for individuals to be reunited with their lost and unclaimed super.

TIGHTER ACCESS TO THE AGE PENSION.

From 1 January 2017, the government will increase the assets test limit to qualify for a full pension. The maximum value of assets a person can own, in addition to their family home, and still receive the full pension will increase from $202,000 to $250,000 for single homeowners. For couples who own their own home this figure will increase from $286,500 to $375,000. Pensioners who do not own their own home will have their threshold increased to $200,000 more than homeowner pensioners.

The maximum value of assets a retiree can hold beyond the family home and qualify for a part pension will be reduced. The new thresholds will be $823,000 (decrease from $1.15 million) for a homeowner couple and $547,000 (decrease from $775,000) for a single homeowner. The previously announced proposal by the Government to change the indexation of the age pension has been dropped.

What’s counted under the assets test?

Every asset you own (including the market value of your super pension, collectibles, personal use assets, motor vehicles) other than your family home is counted in this test.

One strategy worth considering if you might lose access to a part-pension is superannuation splitting. This works where one partner in a couple is younger than the other. Under the assets test, the super of your partner is not included if they are not yet of pension age. So, while you will now be effectively assessed under the lower single assets test limit and CentreLink will consider your combined assets, they will exclude your partner’s super balance.

​